Albert Czech Republic’s profit rose by 87 percent year-on-year to CZK 1.98 billion last year. Sales increased by 8.6 percent to CZK 66.75 billion. This follows from the company’s annual report located in the Document Collection.
At the end of last year, the chain operated 335 stores in the Czech Republic, which were supplied by six distribution centers.
The company says it employs over 20,000 people. In the annual report, it pointed out that it makes room for flexible and short-time working hours and, when converted to full-time working hours, creates 10,000 jobs in the Czech Republic.
Jiří Mareček, a spokesman for the chain, said that the company invests over 1.2 billion CZK in the Czech Republic every year. According to him, the company has invested in the modernization of dozens of stores or in energy and heat saving technologies.
According to Mareček, Albert also invested in automation and robotics last year, thereby saving costs for manual work in warehouses and stores. These are, for example, electronic price tags, automatic cleaning robots or software solutions for data processing.
Gross margin has fallen, the chain says
Mareček said that in the retail trade, profit usually varies in units of percentage of turnover. “Albert is at the bottom end of that financial indicator. Last year, the profitability of the business was less than 2.8 percent of sales. This is completely in line with our previous public comments, and from this point of view, the results for last year are not surprising,” he added.
He also stated that the company’s gross margin indicator fell last year compared to previous years, i.e. the difference between sales revenue and direct costs of goods sold, and the entire increase in the company’s profit goes to investments in savings programs and increasing efficiency in its own operations.
In the annual report, the company states that in addition to raising wages at the beginning of 2022, it also adjusted extraordinary wages again in September. The company increased wages this year as well. According to Mareček, the company’s labor costs increased by hundreds of millions of crowns, and during the years 2022 and 2023, the wages of employees at stores rose by an average of 17 percent.
A competitive chain Billa last year, profit fell by approximately 30 percent to 458.87 million crowns. The company’s sales, on the other hand, increased from about 31.35 billion crowns to 33.7 billion crowns.
Penny Market last year in the Czech Republic, according to its annual report, the year-on-year profit increased by 22 percent to about 1.2 billion crowns. The company’s sales rose by 15.5 percent to 48.7 billion crowns.
Chains Tesco Stores for the financial year ending on February 28, 2023 in the Czech Republic, net profit fell year-on-year by 85.6 percent to 113 million crowns. The company’s sales, on the other hand, increased by approximately 3.6 billion crowns to a total of 45.7 billion crowns.
Chain gain Lidl Czech Republic in the last accounting year, it fell by six percent year-on-year to 5.18 billion crowns. The company’s sales increased by ten percent to 84.36 billion crowns. Lidl’s financial year also ended on February 28 this year.